In brief: Corporate income tax (IS) in Morocco applies to company profits at proportional rates of 20% for profits below 100 million MAD and 35% for profits at or above 100 million MAD as of 2026. The DGI administers this tax on a declarative basis through the SIMPL portal.
Corporate Income Tax: This article provides a concise summary of the provisions of the General Tax Code (C.G.I) updated to 2026 regarding Corporate Income Tax. Under no circumstances should this summary substitute for a tax consultation or a detailed reading of the provisions of the CGI and the circulars in force.
Corporate Income Tax represents a key component of taxation in Morocco.
Corporate Income Tax - What is it?
Corporate Income Tax (CIT) in Morocco is a tax that applies to profits earned by companies. It applies in particular to the profits of LLCs (limited liability companies) and PLCs (public limited companies). Certain partnerships incorporated in Morocco and comprising only individuals are excluded from corporate tax unless they irrevocably elect for it, under Articles 2-II and 3 of the CGI.
Companies subject to corporate tax file an annual tax result return and pay the tax spontaneously. Non-resident companies without an establishment in Morocco have particular filing requirements for disposals of Moroccan property or securities, within thirty days following the month of disposal.
What is the scope of application of CIT (Corporate Income Tax) in Morocco?
The scope of application is defined by two key factors:
- First, territoriality (in which zone the tax applies)
- Second, the attributions of persons (or entities to which it applies)
Territoriality
Subject to statutory exclusions and exemptions, companies with or without a registered office in Morocco are taxed on property, profit-making activities and transactions carried out in Morocco, even occasionally, and income allocated to Morocco by a tax treaty. Non-resident companies are also liable on the gross payments covered by Articles 5-II and 15 of the CGI, subject to applicable treaties.
Circular 717 gives examples of establishments of non-resident companies. Where a tax treaty applies, permanent establishment status depends on its definition and conditions, including those for construction sites.
- First, management or operating headquarters;
- Then, branches, agencies, sales outlets;
- Construction or assembly sites;
- And finally, purchasing offices or counters operated in Morocco by a non-resident company that purchases goods there for resale in their original condition.
Taxable persons
The General Tax Code (CGI) stipulates that CIT mandatorily applies to the income, profits and revenues of:
- companies regardless of their form or purpose;
- public establishments and other legal entities carrying out profit-making operations;
- associations and legally assimilated organizations in respect of their profit-making activities;
- Funds created by legislation or by agreement;
- Branches of non-resident companies or groups of said companies;
In certain forms of partnerships (for example, general partnerships, …), CIT may be due upon irrevocable election by the taxpayer. Since the 2025 Finance Law, joint ventures (sociétés en participation) and economic interest groupings (GIE) follow their own rules, detailed in our article on SEPs and GIEs under corporate tax.
What is the taxable base of Corporate Income Tax (CIT)?
CIT is based on the taxable income of the company, which must be determined according to the accounting rules in force in Morocco.
Under the provisions of Article 8-I of the C.G.I., the taxable income of each accounting period is the excess of revenues over expenses for the period.
Deductible expenses are considered to be expenses incurred or borne for the needs of the taxable activity.
In practice, the reconciliation table from accounting income to taxable income neutralizes, in particular, expenses considered as non-deductible, namely for example:
- Expenses unrelated to the business operation
- Fines, penalties and surcharges
- Expenses not supported by proper documentation
- Donations
- Certain expenses whose deductibility is considered limited, for example:
For passenger transport vehicles acquired from 1 January 2025 and subject to the ceiling, the tax-depreciable value is capped at MAD 400,000 including VAT, spread equally over five years, or at most MAD 80,000 per full year. Earlier acquisitions retain their former ceiling.
- Expenses paid in cash are deductible only up to 5,000 MAD per day and per supplier, without exceeding 50,000 MAD per month and per supplier (Art. 11-II of the CGI) — only the excess portion is added back to taxable income. Likewise, depreciation allowances on fixed assets acquired and paid for in cash beyond these same thresholds are not deductible;
In the case of a loss-making year, tax losses are carried forward over four fiscal years, with the exception of those relating to depreciation, which can be carried forward without time limitation.
What is the CIT (Corporate Income Tax) rate applicable in Morocco?
Updated with the provisions of the 2026 Finance Act.
For fiscal years beginning from 1 January 2026, the ordinary rate is 20%; the rate is 35% once net profit reaches MAD 100 million, subject to the exclusions and retention rule of Article 19-I-B of the CGI. Bodies covered by Article 19-I-C are taxed at 40%, subject to the temporary exception for the microfinance institutions concerned. The return from 35% to 20% requires three consecutive fiscal years below the threshold, except for the statutory exception for fixed-asset disposal proceeds.
| **Net income level** | **2022 rates (historical)** | **Rates enacted by the 2023 Finance Act** | |||
| **2022** | **2023** | **2024** | **2025** | **2026** | |
| Less than or equal to 300,000 | 10% | 12.5% | 15% | 17.5% | 20% |
| From 300,001 to 1,000,000 | 20% | 20% | 20% | 20% | 20% |
| Strictly above 1,000,000 and strictly below 100,000,000 | 31% | 28.25% | 25.5% | 22.75% | 20% |
| Greater than or equal to 100,000,000 | 31% | 32% | 33% | 34% | 35% |
Specific regimes
() Industrial activity refers to any activity that consists of directly manufacturing or transforming tangible movable goods using technical installations, equipment and tools whose role is predominant.*
For fiscal years beginning in 2026, exporters are taxed at the ordinary rate of 20%, or 35% under Article 19-I-B. Exporting alone no longer gives an initial corporate tax exemption. A company that reached the threshold during a fiscal year beginning between 2023 and 2026 retains the increased rate during that period even if its profit falls below the threshold, except where the threshold was reached because of disposal proceeds under Article 9-I-C-1°.
Eligible industrial and service outsourcing companies are exempt for their first five consecutive operating fiscal years. For eligible hotels and tourist entertainment, the exemption covers the taxable portion corresponding to duly repatriated foreign-currency turnover and starts in the fiscal year of the first accommodation transaction in foreign currency. After exemption, the rate is 20% or 35% under Article 19-I.
The General Code also provides specific regimes for certain types of companies:
- Companies established in Casablanca Finance City:
Eligible CFC service companies are exempt for five consecutive fiscal years starting with the first year of CFC status, within the first sixty months after incorporation. Eligible ZAI companies are exempt for their first five consecutive operating fiscal years, excluding the businesses covered by Article 6-II-B-8°. After exemption, they are taxed at 20% for fiscal years beginning in 2026, subject to transitional provisions for older establishments.
- Companies engaged in service outsourcing activities:
Eligible industrial and service outsourcing companies are exempt for their first five consecutive operating fiscal years. For eligible hotels and tourist entertainment, the exemption covers the taxable portion corresponding to duly repatriated foreign-currency turnover and starts in the fiscal year of the first accommodation transaction in foreign currency. After exemption, the rate is 20% or 35% under Article 19-I.
Eligible industrial activities are listed in the annex to Decree 2-17-743 of 19 June 2018, supplemented by Decree 2-24-966 of 5 December 2024 (Article 6-II-B-4°).
For the full list of companies exempt from corporate tax and the conditions of each regime (industry, offshoring, hotels earning foreign currency, IAZ/ZAI, CFC, sports companies…), see our dedicated guide: corporate tax exemptions in Morocco. Companies listing on the stock exchange also benefit from a 25% or 50% corporate tax reduction for three fiscal years (Art. 6-III). The corporate tax reduction applies for the three fiscal years following the listing year: 25% for public sales of existing shares, or 50% for a capital increase of at least 20%, with waiver of preferential subscription rights and simultaneous public distribution, subject to the conditions and exclusions of Article 6-III.
Minimum contribution
Subject to exemptions, the minimum contribution is 0.25%, with a minimum of MAD 3,000. A rate of 0.15% applies to sales by trading businesses of petroleum products, gas, butter, oil, sugar, flour, water, electricity and medicines. Non-resident companies taxed on a lump-sum basis are excluded. This base consists, excluding VAT, of turnover and other operating income, financial income (income from equity investments, foreign exchange gains, accrued interest) as well as subsidies and donations received, whether recorded as operating income or as non-current income (Art. 144-I-B of the CGI). Proceeds from the disposal of fixed assets are excluded.
Thus, the minimum CIT contribution is due even in the case of a loss-making year. In the case of a profitable year, the tax payable is the higher of the two amounts: the CIT computed at the rate applicable to the taxable income, or the minimum contribution (Art. 144-I-A). Where the minimum contribution prevails, the excess over the ordinary CIT remains definitively acquired by the Treasury: no carry-forward or offset against the following fiscal years is possible, the minimum-contribution credit having been abolished for CIT purposes.
Companies, other than public service concessionaires, are exempt from the minimum contribution during the first thirty-six (36) months following the date on which they commence operations. This exemption nevertheless ceases to apply upon expiry of the first sixty (60) months following the company’s date of incorporation (Art. 144-I-C-1° of the CGI).
What are the payment methods for CIT?
Corporate tax is paid through four quarterly instalments. Each quarterly instalment is 25% of the tax for the last closed fiscal year. For fiscal years beginning from 2023 to 2026, instalments use the rate applicable to the current fiscal year. The first fiscal year following an exemption is subject to Article 170-III. It should be noted that:
- First, when the final amount of CIT for a given year exceeds the installments paid, the company makes a regularization. This regularization corresponds to the spontaneous payment of the balance by the company.
- Second, in the case of excess tax, the company must automatically offset it against the provisional installments for subsequent fiscal years.
CIT filing is done by electronic declaration.
Have your tax package reviewed by Upsilon Consulting, member of the OEC, before filing.
Need to quickly estimate your Corporate Tax? Our free Corporate Tax Rate Calculator covers the 2023-2026 transitional rates and special regimes (CFC, FIZ, exports, etc.).
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Frequently asked questions
Who is subject to corporate income tax (IS) in Morocco?
Companies, including LLCs (SARL) and PLCs (SA), are subject to corporate tax, subject to statutory exclusions and exemptions. Certain partnerships incorporated in Morocco and comprising only individuals are excluded from corporate tax unless they irrevocably elect for it, under Articles 2-II and 3 of the CGI. Public establishments and other legal entities carrying out profit-making activities are also liable.
When must corporate income tax be paid in Morocco?
Each quarterly instalment is 25% of the tax for the last closed fiscal year. For fiscal years beginning from 2023 to 2026, instalments use the rate applicable to the current fiscal year. The first fiscal year following an exemption is subject to Article 170-III. The regularization of any remaining balance is due by the end of the third month following the fiscal year-end. All payments and filings are made electronically through the SIMPL tax portal. The regularization of any remaining balance is due by the end of the third month following the fiscal year-end. All payments and filings are made electronically through the SIMPL tax portal.
What exemptions are available for corporate income tax in Morocco?
Eligible industrial and service outsourcing companies are exempt for their first five consecutive operating fiscal years. For eligible hotels and tourist entertainment, the exemption covers the taxable portion corresponding to duly repatriated foreign-currency turnover and starts in the fiscal year of the first accommodation transaction in foreign currency. After exemption, the rate is 20% or 35% under Article 19-I. Eligible CFC service companies are exempt for five consecutive fiscal years starting with the first year of CFC status, within the first sixty months after incorporation. Eligible ZAI companies are exempt for their first five consecutive operating fiscal years, excluding the businesses covered by Article 6-II-B-8°. After exemption, they are taxed at 20% for fiscal years beginning in 2026, subject to transitional provisions for older establishments. For fiscal years beginning in 2026, exporters are taxed at the ordinary rate of 20%, or 35% under Article 19-I-B. Exporting alone no longer gives an initial corporate tax exemption. A company that reached the threshold during a fiscal year beginning between 2023 and 2026 retains the increased rate during that period even if its profit falls below the threshold, except where the threshold was reached because of disposal proceeds under Article 9-I-C-1°. Non-profit associations are exempt for activities consistent with their statutory purpose, subject to statutory exclusions. Cooperatives and their unions qualify under Article 7-I-A for collecting and marketing members’ raw materials, or processing members’ raw materials or inputs and marketing processed products with annual turnover below MAD 10 million excluding VAT. OPCVM and securitisation collective investment funds benefit from the exemptions in Article 6-I-A.
